mubbara front desk officer
Hi every one ....I’m working in freight connection shipping line.i want to know what are key performance indicator? And difference between KPI and JD?
From Pakistan, Karachi
amit aishwary choudhary
132
Managing People at Work.

## Key Performance Indicators are indicators which are both financial and non-financial in nature and are used to measure the performance of an organization. They are used to assess the present condition of a business and decide on an appropriate course of action. Key performance indicators (KPI) are helpful in quantifying activities that are usually difficult to measure such as service, satisfaction, leadership etc. They are closely linked to an organization’s overall strategy.
Depending on the nature of the organization and its strategy, the KPIs will differ. They are vital in measuring the achievement of organizational goals particularly in sectors which are difficult to quantify.
Key performance indicators measure quantities against a predefined set of values. These sets of values are called indicators. The indicators can be classified into the following categories:
i) Quantitative indicators: These are values that can be represented as numerical values.
ii) Practical indicators: These are values that are used to interface with the processes within the company.
iii) Directional indicators: These are indicators that are used to measure the direction the organization is taking.
iv) Actionable indicators: These are indicators on which an organization can initiate change.
## Key Performance Area
Key = crucial/main
Performance = Achievement/Attainment
Area = space/range/field of operation
KEY PERFORMANCE AREA = Main achievement space
Point to Note
-KPA is the overall scope of activities that an individual on a job role has to perform.
-KPA is not always result focused.
-KPA’s can be inclusive of KRA’s
In organizations, each role or job has a “Job Description (JD)” which consist of all the responsibilities the person on job has to perform. All the activities listed in JD falls in two categories:
-Category A – List of functions and activities crucial or critical for the job role. These activities form the KRA of the job.
- Category B – List of functions and activities associated with the job role but not truly critical for the role. These functions are important for overall performance of the team, department or organization as a whole and form the KPA for the job
For Example :
Role – Product Manager
Goal – Ensuring delivery of quality product within schedule.
Key Performance Areas
1.Maintaining good working condition in plant.
2.Optimum Resource Utilization.
3.Process Improvement.
4.Safety and Prevention planning and control.
5.Working within the company’s SLA(Service Level Agreement), GRC(Governance, Risk Management and Compliance) policies
Regards,
Amit

From India, Delhi
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